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TSE:CP

Canadian Pacific Rail (CP.TO)

121.61
+0.70 (0.58%)
as of Jun 18, 2026, 8:00:00 pm Market Open.
639 watching
0
Investor Insights
star iconJun 18, 2026, 12:00 am

This summary was created by AI, based on 28 opinions in the last 12 months.

Canadian Pacific Rail (CP-T) has been the subject of mixed reviews among analysts, with some viewing it as a strong long-term hold due to its unique North American footprint and benefits from recent acquisitions, particularly its merger with Kansas City Southern (KSU). Many experts suggest that while the stock has seen some recent positive momentum following its breakout above $117, it remains vulnerable to fluctuations related to trade tariffs and a potential economic downturn impacting freight volumes. The current economic environment has brought a freight recession, causing some analysts to advise caution and recommend waiting for a pullback before investing. Despite these concerns, several reviews highlight the company's efficiency improvements from AI and a generally positive growth outlook, although they warn that the market context remains uncertain. Overall, the recurring theme is a positive long-term sentiment tempered by short-term concerns regarding trade policies and economic conditions.

consensus icon
Consensus
Hold
valuation icon
Valuation
Fair Value
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Similar
CNR
DON'T BUY
CP vs. CN He feels the same way about both rails (see his CP comments). CP has very good exposure to grain. It will benefit from more Alberta oil shipments. Done well reducing expenses, but both rails are selling at premium multiples, too high for him. He'd be cautious stepping into either today.
WEAK BUY
CNR-T vs. CP-T It depends on your stage of life. CNR-T is more diversified. CP-T is more Canadian concentrated. He would go with CNR-T because of this. They should do better this year. If the economy got rougher, CP-T would drop off more.
TOP PICK
If you have a pro-growth movement in markets going forward, you have to have an investment like this. They are at the core of this theme. $280 will be its next move. It has really good support at $240. It is trading at a discount to its forward PE. Everything is pointing in the right direction for this. Seasonality for rails kicks in right now. (Analysts’ price target is $300.94)
COMMENT
He owns CNR-T instead. He likes their ownership and management and it has a good US footprint. CP-T has too big of a commodity exposure for him. He likes the outlook for railways overall.
BUY
Railroads. CNR-T vs. CP-T. Railroads are a great industry. A duopoly in Canada. CP-T is the more profitable operator and he favours it.
TOP PICK

Quality name that has gone on sale. Q3 was very strong with improvising efficiencies. They are doing a buy back. Modeling 16% growth with a name trading at 14 times 2019 earnings. If the economy is fine, which it is their base case, this is a name you want to be buying now. (Analysts’ price target is $312.47)

BUY
CP vs. CN It's as good as the Canadian economy. Ottawa's policies haven't been kind to our economy. CP vs. CN depends on their pricing at a given time. CN has a better network across North America, whereas CP is more Canadian. Both are good railroads.
BUY
CP vs. CN He likes and owns both. You're good to own either. Crude by rail is a tailwind. CP: great price momentum and valuation; it ranks in the top 25% of all stocks for him. CN: Almost the same, also in the top 25% and scores slightly better than CP.
BUY
CP-T vs. CNR-T.. They will trade in tandem. CNR has $100 as an entry point. CP-T should be bought at $250 or $225. There will be a consolidation period for a couple of months so you can pick away at the names. CP-T has taken over leadership in terms of relative performance.
COMMENT

CN-T or CP-T? He owns CN and CSX in the U.S. He likes CN for its north-south traffic to the States--it's safer. CP is east-west (more Canadian). CN will benefit from shipping out Alberta oil to California. It costs $12 per barrel to ship it, but the low WCS cost makes it still worth it.

BUY

They tend to do well this time of the year. We saw it come down. This is common right now. He is favourable for this one.

BUY

CNR vs CPR. He likes both CNR and CPR. They are bell weathers on the Canadian economy. There are high barriers to entry. It is an oligopoly between the 2 names. You can buy now and likely see double digit increase. With the recent pullback, a good entry point.

BUY ON WEAKNESS

He likes the rail. He is interested in this pullback as they were a little overvalued. The bigger play here is them going to grain shippers and other long-term contracts leveraging on the current crude contracts.

TOP PICK

[The guest could not make any comment about this selection as a top pick due to time constraints].

HOLD

They lowered their operating ratio target, which is good, so the stock rose. She likes rails and actually owns CN Rail. Long-term, rails will do well, gaining business in crude oil. Rails will do well if the economy does well. They see good volume growth and pricing. Maybe not buy more but wait instead.

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